Customer Relationship and Businesses

1.1. How can the success of customer relationship-building activities be evaluated?There are several methods for gauging and assessing the effectiveness of client relationship-building initiatives. The first is through the close rate, which refers to the number of closed deals compared to those in progress. Every sales team uses close rates as a success measure; however, one must be cognizant that it only encompasses part of the picture. Consequently, companies must use the average deal size as a complementary tool (Mortensen et al., 2019). The average deal size indicates the worth of the closed deals. When customer relationship-building activities are effective, the close rate will increase. The second evaluation tool is the upsell rate. Upselling refers to convincing the customer to spend more than what they planned to spend before. The upsell rate also refers to the number of customers purchasing items they originally did not plan to purchase (Mortensen et al., 2019). An effective customer relationship-building activity should increase the upsell rate by helping the company forecast the leads that are more probable to upgrade or purchase other items. If finding predictors improve the upsell rate, the intervention is effective. Net-new revenue also evaluates the success of customer relationship-building activities. It refers to the time a customer stays new, depending on the company’s business model (Suwunniponth, 2021). Tracking net revenue informs the company of the value of the new customer batch. With the right customer relationship-building activities, a company should see an increase in its net-new revenue. The length of sales in the pipeline stage is also an evaluative measure and refers to the average lead stay in every stage of the company’s pipeline (Rodriguez and Boyer, 2020). The stages refer to the steps in the company’s sale process, and tracking them helps identify bottlenecks in the sales process. Customer relationship-building activities are effective when the deals move faster through every stage (Rodriguez and Boyer, 2020). Overall, effective customer relationship-building activities would result in a positive increase in each of these indicators.